UK REITs make a wrong start
UK REITs make a wrong start
- 2006
- EuroProperty February 2006, 16(1) .
Examines the affects of two restrictions that the UK REIT regime looks set to introduce when it is in place by January 2007. Rule one is that no one person will be able to own more than 10% of a REIT's shares. This would disqualify many small and medium-sized companies, and in some cases a fewer larger ones too. The second rule applies to restrictions on gearing, that will prevent most major companies from converting. Therefore, if a REIT's interest cover is less than 2.5% an additional tax charge will be included. The article provides a concise list of proposed UK REIT regulations.
Examines the affects of two restrictions that the UK REIT regime looks set to introduce when it is in place by January 2007. Rule one is that no one person will be able to own more than 10% of a REIT's shares. This would disqualify many small and medium-sized companies, and in some cases a fewer larger ones too. The second rule applies to restrictions on gearing, that will prevent most major companies from converting. Therefore, if a REIT's interest cover is less than 2.5% an additional tax charge will be included. The article provides a concise list of proposed UK REIT regulations.